Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

Robo-advice needs genuine interaction: Midwinter

robo-advice/financial-planning/financial-advice/

23 March 2016
| By Daniel Paperny |
image
image image
expand image

Robo-advice offerings today do not offer any genuine interaction and more work is needed to help create a seamless interface with clients, Midwinter managing director, Julian Plummer, says.

As Midwinter gears up to launch its digital advice framework next month, Plummer said that automated investment tools represented an opportunity for greater innovation in financial planning.

“The confidence in robo-advice is still developing. All robo-advice [today] is scaled advice. It is objectives-based, because it only has one risk profile and it is self-servicing,” Plummer said.

A key feature of Midwinter's new digital advice framework is that all the data that its cloud-based AdviceOS platform has on a user will be transported across into their digital advice account.

This will allow users to have greater insights into individual spending habits and behaviours in real-time as well as being able to seamlessly escalate from self-service all the way up to face-to-face advice, he said.

"We are introducing this concept of stochastic returns into [our] projections to allow the users the probability of advice and the probability of getting their goals…what you want to do with this digital advice framework is get every combination of advice available," Plummer said.

"It's more of a cohesive approach than just robo-advice. What we want to do is make financial planners be [at] the centre of their clients' financial universe and this is the tool they can do it with," he said.

According to Plummer, another key feature of the framework is its ability to produce a statement of advice (SOA) in real-time.

"Digital SOAs are going to be the lingua franca, the language with which we speak to our customers. We want to be the default choice for financial planning software in Australia," he said.

"What we want to do is make it as engaging as possible but at the same time still have all the [features] that a typical SOA has, such as advice fees, service fees and investment fees."

A key focus for Midwinter's roadmap for the digital advice framework is now the integration of self-managed superannuation funds via third parties using application programming interfaces (APIs).

Plummer confirmed Midwinter will begin pilot programs for the digital advice framework in the first week of April.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

The succession dilemma is more than just a matter of commitments.This isn’t simply about younger vs. older advisers. It’...

5 days 11 hours ago

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

4 weeks 2 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

1 month ago

ASIC has released the results of the latest adviser exam, with August’s pass mark improving on the sitting from a year ago. ...

1 week 1 day ago

The inquiry into the collapse of Dixon Advisory and broader wealth management companies by the Senate economics references committee will not be re-adopted. ...

2 weeks 1 day ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

2 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND